Taiwan's Foxconn (Hon Hai Precision Industry), a partner of Apple and NVIDIA, has achieved record sales amid a surge in artificial intelligence (AI) infrastructure construction.
On the 5th (local time), Bloomberg News reported that the electronics contract manufacturer Foxconn recorded a 15% increase in revenue for the fourth quarter of last year, reaching 2.13 trillion Taiwan dollars (approximately 95.1258 trillion won). This surpassed the average market analyst estimate of a 13% increase. In December of last year alone, Foxconn recorded a 42% increase, amounting to 654.83 billion Taiwan dollars (approximately 29.2381 trillion won).
Foxconn is Apple's largest partner, assembling iPhones and producing semiconductors for NVIDIA. Recently, it has begun constructing a large-scale factory after receiving orders for the next-generation AI server product, the GB200 chip from NVIDIA.
Taiwan's AI hardware companies, including Foxconn, are enjoying a boom thanks to investments from U.S. IT firms like Alphabet, Google's parent company, and Microsoft in data center servers. However, questions continue to arise about whether the revenue and market growth of AI will persist.
Foxconn predicts that this year, the revenue from its cloud business sector, including AI servers, will be comparable to the revenue from its iPhone manufacturing sector. Foxconn has been diversifying its business as growth in iPhone sales slows down, with more than half of its sales coming from Apple.
Meanwhile, Foxconn aimed to enter the electric vehicle (EV) market and pursued acquiring equity in Japan's Nissan Motor, but the plan was put on hold as Nissan is moving forward with a merger with Honda Motor.